RPM International Inc (RPM)
Cash ratio
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 237,379 | 248,905 | 262,746 | 240,586 | 215,787 | 193,870 | 232,118 | 197,574 | 201,672 | 193,191 | 192,851 | 213,212 | 246,704 | 249,214 | 272,945 | 251,765 | 233,416 | 212,242 | 208,173 | 212,091 |
| Short-term investments | US$ in thousands | 134,100 | — | — | — | 126,300 | — | — | 114,185 | 125,000 | 137,513 | 143,412 | 148,656 | 146,000 | 127,140 | 116,309 | 106,758 | 94,700 | 89,215 | 97,798 | 107,200 |
| Total current liabilities | US$ in thousands | 1,466,060 | 1,201,950 | 1,254,360 | 1,268,650 | 1,490,800 | 1,119,510 | 1,290,030 | 1,649,250 | 2,016,410 | 1,934,900 | 1,483,590 | 1,163,620 | 1,331,410 | 1,087,500 | 1,132,690 | 1,092,780 | 1,093,580 | 962,131 | 984,068 | 1,496,570 |
| Cash ratio | 0.25 | 0.21 | 0.21 | 0.19 | 0.23 | 0.17 | 0.18 | 0.19 | 0.16 | 0.17 | 0.23 | 0.31 | 0.29 | 0.35 | 0.34 | 0.33 | 0.30 | 0.31 | 0.31 | 0.21 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($237,379K
+ $134,100K)
÷ $1,466,060K
= 0.25
The cash ratio for RPM International Inc has shown fluctuations over the past few years. The company's cash ratio indicates its ability to cover its short-term liabilities with its cash and cash equivalents.
The ratio has ranged between 0.16 and 0.35 over the last few years, with the highest value observed in February 2021 at 0.35. This signifies that the company had $0.35 in cash and cash equivalents for every $1 of current liabilities during that period.
In general, a higher cash ratio is considered more favorable as it indicates a company has more cash on hand to cover its short-term obligations. On the other hand, a lower cash ratio may suggest that the company may have difficulties in meeting its immediate payment obligations.
The trend in RPM International Inc's cash ratio shows some variance, which could be influenced by factors such as changes in operating efficiency, investment activities, and financing decisions. It would be important for stakeholders to closely monitor these fluctuations to assess the company's liquidity position and financial health.
Peer comparison
May 31, 2024